Opay, Okash, Other Loan Apps In Trouble As Reps Investigate Illegal Activities

The House of Representatives has launched an investigation into the actions of illicit financial technology (fintech) companies and mobile application lenders who threaten debtors if they do not return loans.

Reports obtained by The Eagle reveal that the House of Representatives mandated the House Committee on Banking and Currency; Financial Crimes; and Telecommunications to “investigate the alleged sharp practices and abuses by FinTech and online mobile digital loan apps and companies in Nigeria and report within four weeks.”

The lawmaker lamented the large number of online loan apps being distributed across Nigeria by some fraudulent and unscrupulous profiteers, which are affecting many low-income Nigerians who are coerced to borrow and become entangled in a web of sham loan apps hosted on Google Play Store by individuals and companies looking to swindle low-income earners.

He faulted COVID-19 for job losses and low income, saying that these factors hastened the pace of financial industry digitalization and “the entry of some unscrupulous and unregulated financial service companies.”

In his words “The House is disturbed that these predatory lending apps are disguised as platforms where unsuspecting members of the public are promised access to quick loans with no collateral except the provision of a Bank Verification Number.

“The House is also disturbed that such victims are expected to repay loans at astronomical interest rates within three to seven days, as against the 91 to 365 days claim on Google Play store, which has over 83.07 per cent market share in Nigeria.

“The House is also worried that such an account holder did not have the required license to operate as a money lender, which led the commercial bank to close the first account, but such operations were moved to another account named Speedy Choice which is still operational and managed by the same people who managed the previous account.

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“The House is again worried that many of such online loan apps operating in Nigeria, disbursing loans to customers with no collateral and defaulters, are always sent threatening messages and that loan apps and other fintech products can be used for money laundering and other forms of illicit financial flows.

“The House is pained that these unregulated Nigerian fintech companies shame, threaten customers for late payment of loans.”

The lawmaker, therefore, urged the House to investigate the activities of these fintech companies including OKash, Opay, PayLater, PalmCredit, Branch, QuickCheck, Aella Credit, FairMoney, KiaKia, EasyCredit, NewCredit, Umba, Carbon, FirstNell, SoftNaira, SharpCash, Newcredit, Cash Mall, NairaLand, Naira9ja, New Credit Loan App, Future Cash, SharpCredit, MoneyHub, 9jaCash, Henloan, Get Loan, Plenty Cash, Fundy, iMoneyPlus, CashCredit, LifeLine, Lumos Loan, NairaPlus, Care Finance, Cashbean, CashMe, LoanMe, LifePurse iLoanPro, LairaPlus, OxLoan and NoNowMoney.